Directed Edge is a lot higher-level than this, and more focused on making it easy for their users to make good recommendation engines. Prediction API is focused on more general tasks, and for that reason I predict that it'll have trouble competing with Directed Edge. Unless some startup comes along and competes with Directed Edge using Prediction API as a back-end -- but we can talk about that later, if it ever happens.

Prediction API is a nice broad tool, but Directed Edge still has a big advantage in their niche.